THE European telematics industry is developing at a slower pace then predicted, according to a leading traffic information and vehicle tracking company.

UK-based Trafficmaster outlined the European situation when announcing its interim figures, which showed its pre-tax losses for the six months to June were reduced to £4.9 million, compared to £8.1 million for the same period the previous year.

Trafficmaster said: 'Our joint venture with Fiat in Italy is now collecting traffic data and the focus is now on developing the market. Through our investment in Mediamobile in France traffic information is being provided to customers and OEMs (original equipment manufacturers) in the Ile de France area, but growth is slower than expected.

'Similarly in Germany, slow growth of demand for telematics services has affected all players in this market, including our subsidiary Trafficmaster Europe, which is not trading profitably.'

Trafficmaster said its management focus over the next 12 months is to develop the market and reduce its losses.

Chairman Sir James McKinnon said: 'Trafficmaster continues to make commercial and financial progress meeting its objectives. Our financial priorities, as previously stated, have been to reduce losses and increase revenues while reversing the cash drain seen in 2001.'